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Nevada, Iowa | Admittedly, I am pretty ignorant on the whole crop insurance scenario. I took the below snippet from a page on this website https://cropinsuranceinamerica.org/
I am sure there is some bias here as this website (I believe) represents the conglomeration of the companies that write crop insurance in the US. Here is the paragraph -
"The Federal government provides reinsurance, that is insurance for the insurance companies. As such, the government shares in an agreed-upon portion of the companies’ underwriting losses, and in return, takes a share of the companies’ underwriting gains. In short, as a reinsurer the government helps shoulder excessive losses, especially in a significant loss year like 2012, but also shares in underwriting gains in years when losses are less than premiums."
Whenever I read about subsidies, I never read about how the Gov't. might actually be compensated for a portion of this. Obviously, no figures are given but it would be nice to know how it all balances out taking everything into account. Maybe someone here might have a bigger picture.
Restating that I am ignorant about the whole scenario. | |
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